6 July 2010
And of course here are few other significant points from TD’s report:
• “Six-in-ten are not sure if they can afford their home purchase in case the rates rise”.
• 70% of first-time home buyers either put, or plan to put even less than 20% down.
• Almost 75% of home buyers “already have or plan to have a fixed-rate mortgage”.
In our opinion, the last item reflects really conservative mortgage approach among the Canadians. Variable-rate mortgage is very popular in ethnic markets (including Russian-speaking citizens). The benefits are obvious: great discounts (prime -0.70%), better principal/interest correlation (today you pay off your principal much more than in case of the fixed mortgage) and, of course, more flexible options.